■ Privatization
France sells Dassault stake
France is selling its entire 15.74-percent stake in French industrial software group Dassault Systemes, French bank Societe Generale said Tuesday. The sale, through a placement of shares with qualified investors on the internat-ional market, was expected to generate between 530 million and 580 million euros (US$571 million to US$625 million), the bank, which is managing the deal with Credit Suisse First Boston, said. Groupe Industriel Marcel Dassault, which owns 45.22 percent of Dassault Systemes, will waive its pre-emption rights on the state holding, Societe Generale said. Shares in Dassault Systemes surged 3 percent to 3.66 euros in opening trading while the CAC 40 index of leading French stocks gained 0.96 percent.
■ Real estate
Singapore rents drop 12.5%
Office rents in Singapore's prime districts dropped by a steep 12.5 percent, the biggest quarterly drop among major Asian cities, a research report said yesterday. Rents in the city-state for the three-month period ending in June slipped to S$3.10 (US$1.78) per square foot (psf), ranking behind Tokyo, Bombay, New Delhi, Hong Kong, Seoul and Beijing. The report by CB Richard Ellis (CBRE) cited the SARS outbreak and economic uncertainty as reasons behind the fall. Tokyo saw a milder 1.47 percent decline in monthly prime office rents to US$7.87 psf, but remained the most expensive in the region. Taking second was Bombay where office rents declined 4.6 percent to US$2.26 psf, ahead of Hong Kong where grade A office rents were US$2.15 psf.
■ Macroeconomics
Japan watches interest rates
Bank of Japan governor Toshihiko Fukui said yesterday he would be watching to see if the recent surge in long-term interest rates thwarts emerging expectations of a much-awaited economic recovery in Japan. Fukui also stressed the central bank was still "obliged to pursue monetary easing" to get the economy back on a sustained recovery path and overcome deflation. His comments came after the yield on the most-actively traded No. 252 10-year government bonds reached the highest levels since December 2000. The yield stood at barely above 0.40 percent just a few months ago. "The possibility of an economic recovery in Japan is strengthening ... in line with our scenario," Fukui said in a speech to a gathering in the central Japanese city of Nagoya, citing positive economic data and surging share prices.
■ Labor
Nestle to vacate Korea
Nestle, the Swiss-based multinational food giant, said yesterday it is considering pulling out of South Korea because of "reckless" labor unrest. "Our head office has instructed us to consider legal steps for the closure of Nestle's plant in South Korea," a Nestle Korea spokeswoman told reporters. She said Nestle's manage-ment was exasperated by "reckless" labor action by workers affiliated with the Korean Confederation of Trade Unions (KCTU), a militant labor group. The group has led a wave of labor strife, demanding shorter working hours and union participation in manage-ment decision-making which has already led to the closure of four foreign-invested firms operating in South Korea this year. Nestle Korea's 460-member union went on strike on July 7 demanding a 11.7 percent pay hike and a say in management. The company has proposed a 5.25 percent wage increase.
NO HUMAN ERROR: After the incident, the Coast Guard Administration said it would obtain uncrewed aerial vehicles and vessels to boost its detection capacity Authorities would improve border control to prevent unlawful entry into Taiwan’s waters and safeguard national security, the Mainland Affairs Council (MAC) said yesterday after a Chinese man reached the nation’s coast on an inflatable boat, saying he “defected to freedom.” The man was found on a rubber boat when he was about to set foot on Taiwan at the estuary of Houkeng River (後坑溪) near Taiping Borough (太平) in New Taipei City’s Linkou District (林口), authorities said. The Coast Guard Administration’s (CGA) northern branch said it received a report at 6:30am yesterday morning from the New Taipei City Fire Department about a
IN BEIJING’S FAVOR: A China Coast Guard spokesperson said that the Chinese maritime police would continue to carry out law enforcement activities in waters it claims The Philippines withdrew its coast guard vessel from a South China Sea shoal that has recently been at the center of tensions with Beijing. BRP Teresa Magbanua “was compelled to return to port” from Sabina Shoal (Xianbin Shoal, 仙濱暗沙) due to bad weather, depleted supplies and the need to evacuate personnel requiring medical care, the Philippine Coast Guard (PCG) spokesman Jay Tarriela said yesterday in a post on X. The Philippine vessel “will be in tiptop shape to resume her mission” after it has been resupplied and repaired, Philippine Executive Secretary Lucas Bersamin, who heads the nation’s maritime council, said
CHINA POLICY: At the seventh US-EU Dialogue on China, the two sides issued strong support for Taiwan and condemned China’s actions in the South China Sea The US and EU issued a joint statement on Wednesday supporting Taiwan’s international participation, notably omitting the “one China” policy in a departure from previous similar statements, following high-level talks on China and the Indo-Pacific region. The statement also urged China to show restraint in the Taiwan Strait. US Deputy Secretary of State Kurt Campbell and European External Action Service Secretary-General Stefano Sannino cochaired the seventh US-EU Dialogue on China and the sixth US-EU Indo-Pacific Consultations from Monday to Tuesday. Since the Indo-Pacific consultations were launched in 2021, references to the “one China” policy have appeared in every statement apart from the
More than 500 people on Saturday marched in New York in support of Taiwan’s entry to the UN, significantly more people than previous years. The march, coinciding with the ongoing 79th session of the UN General Assembly, comes close on the heels of growing international discourse regarding the meaning of UN Resolution 2758. Resolution 2758, adopted by the UN General Assembly in 1971, recognizes the People’s Republic of China (PRC) as the “only lawful representative of China.” It resulted in the Republic of China (ROC) losing its seat at the UN to the PRC. Taiwan has since been excluded from